Jamaine Punzalan

Article (news)

Agence France-Presse

<p>SAN FRANCISCO -- As Google races to lead in artificial intelligence, it faces the challenge of making sure the technology doesn&#x27;t slow its profit-pumping advertising engine.</p><p>The internet giant is dabbling with ads in its new AI Mode for online search, a strategic move to fend off competition from ChatGPT while adapting its advertising business for an AI age.</p><p>&quot;There&#x27;s no question that AI is becoming more commonplace as a source for answers,&quot; IDC advertising and marketing technology research director Roger Beharry Lall told AFP.</p><p>&quot;That will inevitably result in a shift in terms of search and the opportunities to promote a brand.&quot;</p><p>The integration of advertising has been a key question accompanying the rise of generative AI chatbots, which have largely avoided interrupting the user experience with marketing messages.</p><div><a href="https://www.abs-cbn.com/news/technology/2025/5/21/-more-advanced-reasoning-google-ramps-up-search-with-ai-mode-1204">&#x27;More advanced reasoning&#x27;: Google ramps up search with AI mode</a></div><p>However, advertising remains Google&#x27;s financial bedrock, accounting for more than two-thirds of its revenue.</p><p>&quot;Google certainly needs to find a way to monetize AI search in the way that it has monetized its past versions of search,&quot; Techsponential analyst Avi Greengart told AFP at the tech giant&#x27;s annual developers conference this week.</p><div><br/></div><div><strong>AI-FUELED ADS </strong></div><div><br/></div><p>A new AI Mode enables conversational interaction with Google during search queries, providing answers in diverse formats, such as video, audio or graphs.</p><p>The internet giant said it is testing integrating ads into AI Mode responses, building on insights gained from AI-generated summaries, or &quot;Overviews,&quot; introduced to search results a year ago.</p><p>These Overviews display comprehensive AI-generated summaries of results above traditional website links and ads.</p><p>&quot;The future of advertising fueled by AI isn&#x27;t coming — it&#x27;s already here,&quot; stated Vidhya Srinivasan, Google&#x27;s vice president of Ads &amp; Commerce.</p><p>&quot;We&#x27;re reimagining the future of ads and shopping: Ads that don&#x27;t interrupt, but help customers discover a product or service.&quot;</p><p>Google is extending ads in AI Overviews to desktop in the US, following successful mobile implementations.</p><p>More than 1.5 billion users see AI Overviews monthly, according to the company.</p><p>&quot;Google&#x27;s doing very good job of adapting,&quot; Beharry Lall said.</p><p>&quot;The move right now is to experiment and to gain traction, just as they have.&quot;</p><p>Google&#x27;s aggressive push into generative AI intensifies its competition with OpenAI&#x27;s ChatGPT, which added search engine capabilities to its popular chatbot.</p><div><br/></div><div><strong>AI AD TOOLS TOO </strong></div><div><br/></div><p>Google announced it is making AI tools available to streamline the creation of online ads, mirroring similar initiatives by Facebook-owner Meta, Google&#x27;s primary rival in online advertising.</p><p>New features, available in the United States, will enable merchants to leverage AI for effective marketing campaigns and to &quot;power an algorithm capable of targeting new searches and generating additional conversions,&quot; Google said.</p><p>&quot;AI helps a lot in advertising as far as targeting customers more precisely,&quot; Creative Strategies analyst Carolina Milanesi told AFP.</p><p>Google should have opportunities to charge for AI tools for ad campaigns, and even for insights from data the tech firm has about its users’ lives.</p><p>&quot;When you have AI agents doing things for you, those agents are going to need data,&quot; Milanesi said.</p><p>&quot;To get access to that data, you&#x27;re going to have to pay.&quot;</p><p>For example, Google knowing the kinds of restaurants or places someone has searched for online would have value for targeting ads, she said.</p><p>Making money from AI tools and data could help Google diversify revenue sources at a time when its ad business is under pressure from regulators, according to Milanesi.</p><p>&quot;There could be entirely new business models around how a brand connects into those AI results,&quot; said Beharry Lall.</p><p>&quot;In the long run, it&#x27;s going to be additive and beneficial to Google.&quot;</p><p>How Google and other platforms make clear the difference between paid messaging and organic results generated by AI &quot;is going to be the $64 million question,&quot; Beharry Lall said.</p><p>&quot;It&#x27;ll be incumbent on regulatory bodies to develop guidelines,&quot; the analyst said.</p>

<p>As Google races to lead in artificial intelligence, it faces the challenge of making sure the technology doesn't slow its profit-pumping advertising engine.</p>

As Google races to lead in artificial intelligence, it faces the challenge of making sure the technology doesn't slow its profit-pumping advertising engine.

Ads pressured to evolve as AI changes Google search

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Ads pressured to evolve as AI changes Google search

Agence France-Presse,

Glenn Chapman

Published May 22, 2025 03:48 PM PHT

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